Australian Ethical Investment Ltd (ASX: AEF) has made an important call on one particular S&P/ASX 200 Index (ASX: XJO) share, resulting in the sale of all of its Lendlease Group (ASX: LLC) shares.

Australian Ethical aims to offer investors investment options that invest with the ethics that align with the investor.

But, while it may be easy enough to exclude fossil fuels, gambling and other industries like that, it can be a trickier decision about whether to exclude a business that makes a new move that does not align with Australian Ethical’s ESG investing criteria.

That means Australian Ethical looks to evaluate businesses based on environmental, social and governance factors.

Australian Ethical sells Lendlease shares

According to reporting by The Australian, the fund manager decided to sell of its shares in construction and infrastructure business Lendlease.

The reason for the sale is that the Lendlease housing development project Mt Gilead in NSW will hurt a koala colony.

In a blog post, Australian Ethical wrote about the ASX 200 share:

The survival of the Mt Gilead koala colony hinges on the existence of appropriately sized wildlife corridors to provide safe passage across the site, according to advice from the Office of the NSW Chief Scientist and Engineer (OSCE).

We have serious concerns about the way the reports from the OSCE are being interpreted by the NSW Department of Planning & Environment (DPE) and Lendlease and the lack of transparency around public consultation to date.

Even the NSW Government’s own environment protection body, the Environment and Heritage Group (EHG) has found that the current Lendlease proposal is inconsistent with the recommendation from the OSCE.

In our opinion, Lendlease has failed to produce critical information needed to independently assess the impact of its housing development on koalas.

That’s why we’ve sold our shares.

We’re calling on the NSW Minister for Environment & Heritage, the Hon. James Griffin MP to intervene by committing to a transparent public consultation.

Without this, we cannot be confident that this koala colony will survive the developments proposed for the area.

Australian Ethical also said it has concerns about another Lendlease development, Shoreline, in South East Queensland which “also has the potential for negative biodiversity impacts.”

Australian Ethical said it has sold its debt and equity positions in Lendlease and related vehicles, it will also sell its investment in an unlisted property trust, which is managed by Lendlease, “at the first available opportunity”.

According to reporting by The Australian, Australian Ethical reportedly owned around 1.6 million Lendlease shares, worth around $11 million.

Lendlease share price snapshot

Over the past six months, Lendlease shares have fallen by around 30%. Since 3 February 2023, it’s down by over 20%.

The post Australian Ethical just dumped 1.6 million shares of this ASX 200 company. Here’s why appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• I’d invest $5,000 into these excellent ASX shares for the long term
• 3 ASX 200 shares trading ex-dividend before the end of this week

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Australian Ethical Investment. The Motley Fool Australia has recommended Australian Ethical Investment. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/wRu5BlV

If you’re looking for dividend shares to buy this week to boost your passive income, then the two listed below could be worth checking out.

Both have recently been named as buys by analysts and tipped to provide generous yields. Here’s what you need to know about them:

Charter Hall Long WALE REIT (ASX: CLW)

The first ASX dividend share that could be a top option for investors is this property company.

As its name implies, Charter Hall Long WALE REIT is focused on high quality real estate assets that are leased to corporate and government tenants on long term leases.

Citi is a fan of the company. This is due to its low risk income stream, ultra-long leases, sky-high occupancy rate, and inflation-linked rental increases.

The broker believes this will underpin the payment of dividends per share of 28 cents in FY 2023 and 29 cents in FY 2024. Based on the current Charter Hall Long Wale REIT share price of $4.38, this will mean yields of 6.4% and 6.6%, respectively.

Citi currently has a buy rating and $5.00 price target on its shares.

Universal Store Holdings Ltd(ASX: UNI)

Another ASX dividend share that has been tipped as a buy is Universal Store.

Analysts at Morgans are bullish and have an add rating and $7.00 price target on the youth fashion retailer’s shares.

After delivering a very strong half-year result last month, the broker appears confident this strong form can continue. This is thanks to a combination of its strong brands, expansion opportunities, and younger target demographic. The broker believes the “youth demographic is likely to be more resilient” in the current environment.

In respect to dividends, Morgans expects fully franked dividends per share of 30 cents in FY 2023 and 35 cents in FY 2024. Based on the latest Universal Store share price of $5.25, this equates to yields of 5.7% and 6.7%, respectively.

The post Buy these ASX dividend shares with big yields today: experts appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Buy these ASX dividend shares before it’s too late: brokers
• Top ASX small-cap shares to buy in March 2023
• Why Brainchip, Lynas, Megaport, and Universal Store shares are dropping today
• Morgans names 3 of the best ASX shares to buy in March
• How I’d aim to replace an entire salary with passive income from ASX dividend shares

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/Y1PRrXn

If you go shopping for a couch or a car, you target ones that are on sale. 

So why wouldn’t you do the same for ASX shares?

For those who are still scared of buying into stocks that have fallen in price, here’s a couple of recommendations that might change your mind:

‘The shares are trading at a discount’

Even though Lynas Rare Earths Ltd (ASX: LYC) is the only major producer of rare earth minerals outside of China, the stock price has taken a 17.8% dive over the past month.

If you go back six months, the shares have taken a painful 21.8% haircut.

According to Catapult Wealth portfolio manager Tim Haselum, recent news from the world’s largest electric car marker sent a scare through investors.

“In our view, Tesla Inc (NASDAQ: TSLA) announcing a plan to eliminate rare earths from next generation electric vehicles… impacted the share price,” Haselum told The Bull.

“But we believe investors over-reacted to the Tesla news, given continuing demand for rare earths. Consequently, we believe the shares are trading at a discount.”

Shaw and Partners portfolio manager James Gerrish said pretty much the same last week.

“Tesla, and EVs in general, are just one of many demand sources of rare earth materials.”

Haselum also felt like reporting season last month didn’t flatter the Lynas Rare Earths.

“The company posted higher revenue in the first half of fiscal year 2023, but the cost of sales also rose,” he said.

“The company also experienced water supply disruptions at its Malaysian plant.”

‘A strong track record of compound sales growth’

Xero Limited (ASX: XRO) shares lifted 10.5% in a single day last week after its new chief executive announced plans to slash costs and focus on profitability.

However, the stock is still almost half what it was in November 2021.

Haselum thus sees a golden buying opportunity at the moment.

“This accounting software provider is trading at a discount to prior earnings multiples since the price has fallen from its highs,” he said.

“The company has a strong track record of compound sales growth and penetrating key markets… We consider Xero a top quality company.”

This week Xero shares took another dive due to the collapse of Silicon Valley Bank, which had substantial clientele in the US tech industry.

However, the New Zealand software company assured investors that it has no “material exposure” to the failed institution.

“As at 10 March 2023, Xero’s total exposure to Silicon Valley Bank was approximately US$5 million, reflecting Xero’s local transactional banking relationships with SVB in the US and UK,” the company announced to the ASX.

“That amount represents less than 1% of Xero’s cash and cash equivalents as at September 30 2022.”

The post ‘Top quality’: Expert picks 2 ASX 200 shares to buy at a nice discount appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Xero share price dips 3% amid Silicon Valley Bank fallout
• These ASX tech shares have exposure to the Silicon Valley Bank collapse
• Top brokers name 3 ASX shares to buy next week
• Morgans names the best ASX 200 growth shares to buy in March
• Lynas share price resets 52-week low twice in one week

Motley Fool contributor Tony Yoo has positions in Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Tesla and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/zdL2uXa

Regardless of whether you’re a bull or a bear, consensus seems to be that more turbulence and volatility will rule ASX shares this year.

With consumers and businesses having less to spend due to steep interest rate rises, inflation still roaring and unemployment potentially rising, nothing is a certainty for any stock.

However, one industry that’s favoured by many professional investors for its defensive qualities is insurance.

The idea is that insurance companies reap better returns from premiums because of higher interest rates, have pricing power that can combat inflation, and their supply expenses are relatively low.

If you subscribe to this theory, here are two ASX shares playing in the insurance ecosystem that could make excellent buys at the moment:

Revenue and earnings upgraded for the year

Although Johns Lyng Group Ltd (ASX: JLG) seems to be a favourite among analysts in recent times, the share price has still lost more than 23% over the past year.

“The company provides insurance building and restoration services in Australia and the US,” Seneca Financial Solutions investment advisor Arthur Garipoli told The Bull.

He still has faith that the stock will come good.

“First half 2023 group sales revenue of $635.6 million was up 71.2% on the prior corresponding period,” he said.

“Catastrophe work significantly contributed to group revenue.”

Other business divisions also reported ahead of forecasts, boosting the share price over the past month in excess of 10%.

“The company has upgraded revenue and EBITDA for the full year.”

Incredibly, the professional investing community unanimously agrees with Garipoli.

According to CMC Markets, Johns Lyng Group is rated as a strong buy by all 10 analysts currently covering the stock.

‘A candidate for further upgrades going forward’

Garipoli’s said that his other pick, Steadfast Group Ltd (ASX: SDF), provides insurance brokerage services and underwriting agencies.

Similar to Johns Lyng, the reporting season was fruitful for the company.

“Steadfast delivered a solid first half 2023 result. Underlying EBITA of $188.6 million was up 22% on the prior corresponding period,” he said.

“Underlying net profit after tax and amortisation of $111.1 million was up 18.8%.”

The market has been appreciative of Steadfast’s potential in the current financial climate. The stock price has risen a tidy 23.3.% over the past 12 months.

Garipoli has high hopes of further gains.

“The company has the capacity to grow via acquisitions,” he said.

“The premium rate cycle remains strong. Steadfast is a candidate for further upgrades going forward.”

Garipoli’s peers are much more divided on Steadfast compared to Johns Lyng.

Seven out of 12 analysts currently surveyed on CMC Markets rate Steadfast shares as a strong buy, but the other five think it’s a hold.

The post 2 ASX 200 shares to rocket from same booming industry: expert appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• We still hold this ASX 8-bagger because there’s more to come: QVG
• 3 small-cap ASX shares flying high after reporting season: Elvest
• These are my top ASX 200 growth shares to buy today
• 3 ASX 300 shares soaring to new 52-week highs on Friday
• 7 more ideas for buying ASX shares this reporting season: expert

Motley Fool contributor Tony Yoo has positions in Johns Lyng Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Johns Lyng Group and Steadfast Group. The Motley Fool Australia has positions in and has recommended Steadfast Group. The Motley Fool Australia has recommended Johns Lyng Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/a2FEHko

On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a day in the red. The benchmark index fell 0.5% to 7,108.8 points.

Will the market be able to bounce back from this on Tuesday? Here are five things to watch:

ASX 200 expected to fall again

The Australian share market looks set to fall again on Tuesday despite a solid start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 114 points or 1.6% higher. In late trade in the United States, the Dow Jones is up 0.45%, the S&P 500 is up 0.65%, and the NASDAQ is down 1.35%.

Oil prices drop

Energy shares Beach Energy Ltd (ASX: BPT) and Karoon Energy Ltd (ASX: KAR) could have a tough day after oil prices dropped overnight. According to Bloomberg, the WTI crude oil price is down 2.7% to US$74.56 barrel and the Brent crude oil price is down 2.7% to US$80.56 a barrel. The banking collapse has rattled the market.

ASX 200 shares going ex-dividend

There are a number of ASX 200 shares that are going ex-dividend for their latest dividends this morning and could trade lower. This includes coal miner Coronado Global Resources Inc (ASX: CRN), corporate travel booker Corporate Travel Management Ltd (ASX: CTD), and media giant News Corp (ASX: NWS).

Gold price jumps

It could be a good day for gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (down: RRL) after the gold price jumped overnight. According to CNBC, the spot gold price is up 2.6% to US$1,915.2 an ounce. Traders were buying gold due to increased demand for safe haven assets.

Macquarie rated neutral

The Macquarie Group Ltd (ASX: MQG) share price is almost fully valued according to analysts at Goldman Sachs. Following an investor tour, the broker has retained its neutral rating with a price target of $197.53. It notes that the investment bank’s shares are trading above historical multiples despite the prospect of its earnings falling in FY 2023. Goldman is forecasting a 13% decline in its earnings.

The post 5 things to watch on the ASX 200 on Tuesday appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 3 ASX 200 shares trading ex-dividend on Tuesday
• Why are ASX 200 gold stocks like Northern Star having such a stellar run today?
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Should I buy Woolworths shares at $37?
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Corporate Travel Management. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/S7gp16P

When an ASX 200 share trades ex-dividend, it’s normally a pretty big deal. For one, new investors in said company will no longer be eligible for the upcoming dividend payment if they buy the shares after the company has traded ex-dividend.

But reflecting this loss of value for new investors, an ex-dividend date also tends to result in a company’s shares losing a fair chunk of value.

So in these ways, ex-dividend dates are fairly conspicuous events on the ASX 200.

Keeping that in mind, let’s discuss three ASX 200 shares that will be going ex-dividend tomorrow.

3 ASX 200 shares scheduled to trade ex-dividend tomorrow

First up is ASX 200 metallurgical coal mining company Coronado Global Resources Inc (ASX: CRN). Last month, Coronado announced a half-yearly dividend worth 0.5 US cents per share, fully franked. That’s a decent payout to be sure, not one that pales in comparison with some of the monstrous shareholder payouts Coronado sent investors’ way last year.

But new investors won’t be eligible to receive this upcoming dividend come tomorrow, with the payment date now set for 5 April next month. Right now, Coronado shares have a dividend yield of 6.57%.

Next up we have News Corporation (ASX: NWS). This ASX 200 media group, famously helmed by the Murdoch family, also reported its earnings last month. Investors weren’t too thrilled with the lower revenues and earnings News Corp reported. But shareholders will still be getting an increased dividend coming their way.

News Corp is scheduled to go ex-div for the unfranked 10 US cents per share payment on Tuesday, which will be a meaningful increase from the 9.4 cents per share payment that was issued last year.

After tomorrow’s session, News Corp shareholders can then expect to receive this latest dividend on 12 April. News Corp shares have a dividend yield of 1.2%.

What about an ASX travel share?

Finally, let’s talk about ASX 200 travel share Corporate Travel Management Ltd (ASX: CTD). Corporate Travel has been struggling in the dividend department for a couple of years now. After halting its dividends over half of 2020 and all of 2021, the company returned to paying dividends last year.

But the final dividend of  5 cents per share, unfranked, that was paid in September 2022 was a far cry from the fully-franked 22 cents per share investors enjoyed in 2019. Corporate Travel’s next dividend will come on 14 April next month after the company trades ex-dividend tomorrow.

It will be worth 6 cents per share and also be unfranked. Corporate Travel shares have a dividend yield of 0.62% as it currently stands.

The post 3 ASX 200 shares trading ex-dividend on Tuesday appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why are ASX 200 gold stocks like Northern Star having such a stellar run today?
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Should I buy Woolworths shares at $37?
• 5 things to watch on the ASX 200 on Monday
• Guess which ASX 200 stock has landed 3 substantial shareholders in a week

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Corporate Travel Management. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/xeRZzTF

If you are looking to bolster your portfolio with some ASX tech shares, you may want to look at the two listed below that have been tipped as buys by Goldman Sachs.

Here’s what the broker is saying about these ASX tech shares:

Readytech Holdings Ltd (ASX: RDY)

The first ASX tech share that Goldman Sachs rates as a buy is this leading provider of mission-critical software-as-a-service (SaaS) solutions for the education, employment services, workforce management, government and justice sectors.

As well as its positive long term growth outlook, the broker likes the company due to its defensive earnings. It explained:

RDY remains a tech value play within our coverage universe, trading at a >50% discount to peers when accounting for its robust growth outlook. Government software has been a pocket of strength and resilience within TMT (~3/4 of RDY’s earnings) and we are positive on RDY’s ability to deliver mid-teens organic growth at an expanding profit margin through the cycle.

Goldman has a buy rating and $4.45 price target on its shares.

Life360 Inc (ASX: 360)

Another ASX tech share that Goldman Sachs is a fan of is Life360.

It is a growing location technology company that has almost 50 million global active users of its eponymous Life360 mobile app.

Goldman has been impressed with Life360’s performance and believes the company is about to reach an inflection point. It commented:

In our view Life360 is approaching an inflection point as it proves the pricing power of its subscription business model and moves out of the non-profitable tech basket. The full-year impact of price increases drives the majority of CY23 subscription revenue growth, with possible upside to paying subscribers should Tile bundling materially lift payer conversion (expected launch late-1Q23).

Another positive is its huge growth runway. Goldman estimates that the company has a “US$12bn global TAM with a large opportunity to expand its product suite, grow average revenue per paying circle (ARPPC), increase payer conversion, and lift penetration rates outside of the US.”

It is for this reason that the broker has a buy rating and $7.90 price target on Life360’s shares.

The post These ASX tech shares are buys: Goldman Sachs appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• These ASX tech shares have exposure to the Silicon Valley Bank collapse
• Top ASX growth shares to buy in March 2023
• Why Block, BrainChip, Core Lithium, and Life360 shares are racing higher
• This ASX tech share is leaping 13% today as it readies for an entrance into the ASX 200
• These ASX shares are being dumped from the ASX 200 index this month

Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360 and ReadyTech. The Motley Fool Australia has recommended ReadyTech. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/9VBjwia

The second-largest bank collapse in United States history has been making waves these past few days. As the situation develops, the attention of Australian investors could be turning to our own bank shares within the S&P/ASX 200 Index (ASX: XJO).

Suffering a ‘bank run’, Silicon Valley Bank — listed as SVB Financial Group (NASDAQ: SIVB) — found itself in the hands of regulators at the end of last week. Today, the Federal Reserve has provided reassurance that all depositors will be made whole through a measure to contain the fallout.

So, could a similar event unfold within our own major banks, or are Aussie banks in a better position?

Why liquidity matters

Firstly, the Silicon Valley Bank debacle, at its core, is a liquidity problem.

When depositors want their money back (e.g. withdraw it and move the money elsewhere), the bank needs to be able to fulfill that request.

Most of the time this isn’t an issue as few people are looking to withdraw their money at any given moment. This means the bank can lend your money out in the meantime — earning you and the bank a return in doing so.

However, when everyone wants their money at once, that is when issues can arise. The problem is compounded when that money is tied up in illiquid assets.

It is for this reason that regulation exists, requiring banks to have sufficient capital buffers, especially when under the most challenging plausible conditions. Hence, banks must conduct regular ‘stress tests’ to evaluate whether they can operate under these theoretical conditions.

The regulations are a little different in the US, but they also require all large ‘systemically important’ banks to abide by strict regulations including minimum liquidity coverage ratio (LCR), net stable funding ratio (NSFR), etc.

Based on the information available, it seems Silicon Valley Bank may have escaped some requirements due to an increase in the threshold of what is classed as systemically important during the Trump administration.

To gain a greater understanding of the Silicon Valley Bank collapse, you can read more here.

How are ASX 200 bank shares placed?

As we now know, banks need liquid funds at the ready if customers withdraw their money. For Silicon Valley Bank, US$26 billion in available-for-sale securities wasn’t enough to cover the outflows.

The continued withdrawals nudged the US bank to start selling its ‘held-to-maturity’ securities. Those securities were bonds that were estimated to be worth US$15 billion less than cost due to rising interest rates, as noted in the tweet below. As a result, the sale meant Silicon Valley Bank was now realising billions in previously unexpected losses.

So investors started to look at their HTM portfolio. 

It looked bad. pic.twitter.com/aIenrpTSoj

— Genevieve Roch-Decter, CFA (@GRDecter) March 11, 2023

https://platform.twitter.com/widgets.js

This may suggest the bank’s true LCR was below the traditionally expected 100% (at least in hindsight). In contrast, all major ASX 200 bank shares touted LCRs far above the required 100% level at the end of December 2022, as shown in the table below.

Bank	Liquidity Coverage Ratio (LCR)
Commonwealth Bank of Australia (ASX: CBA)	131%
National Australia Bank Ltd (ASX: NAB)	134%
Westpac Banking Corp (ASX: WBC)	139%
ANZ Group Holdings Ltd (ASX: ANZ)	126%
Bendigo and Adelaide Bank Ltd (ASX: BEN)	138%
Bank of Queensland Ltd (ASX: BOQ)	139%
Silicon Valley Bank	Unknown*

Furthermore, it is believed that Australian banks hold a far smaller portion of their high-quality liquid assets in tradeable securities than other countries. This might also mean a lower risk of accessing funds with unrealised gains.

Where Aussie major banks differ from Silicon Valley Bank

Another point of difference between Silicon Valley Bank and ASX 200 bank shares are their depositors.

The troubled US bank’s customers were predominantly tech companies, some of which were burning through cash to fund operations. A disproportional reliance on a single sector meant the bank’s deposits were crippled by the tech pain in 2022.

Major Australian banks are aware of this type of risk. Fortunately, ASX 200 bank shares hold deposits with a diversified base of customers. This should, in theory, drastically reduce the risk of a bank run getting underway in the first place.

The post ASX 200 bank shares: Are they better prepared than Silicon Valley Bank? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• S&P 500 futures lift as regulators shore up SVB deposits
• 3 reasons the 8% NAB dividend yield looks safe to me
• Understanding the collapse of Silicon Valley Bank
• 5 things to watch on the ASX 200 on Monday
• Buy Westpac and this ASX dividend share next week: analysts

SVB Financial provides credit and banking services to The Motley Fool. Motley Fool contributor Mitchell Lawler has positions in Commonwealth Bank Of Australia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended SVB Financial. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank. The Motley Fool Australia has recommended SVB Financial and Westpac Banking. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/BzMtYxm

It’s been a fairly awful start to the week for ASX shares and the S&P/ASX 200 Index (ASX: XJO) so far today. This Monday has seen the ASX 200 take a significant hit, with investors shaken by what’s happening over on the US markets at the moment with the collapse of the tech-focused bank SVB Financial Group.

At the time of writing, the ASX 200 has lost 0.42% and is trading at around 7,114.9 points.

But one sector today is a rather conspicuous outlier in terms of the market’s falls. That would be ASX 200 gold stocks. Gold is one of the top-performing corners of the market right now, with the ten shares experiencing the highest gains on the ASX 200 right now all being gold stocks.

Take the largest ASX 200 gold miner on the market, Newcrest Mining Ltd (ASX: NCM). Right now, Newcrest shares are up a very healthy 3.23% at $24.10 each.

But those gains pale in comparison to some other ASX 200 gold stocks. Take the Northern Star Resources Ltd (ASX: NST) share price. Northern Star shares have rocketed by an impressive 5.4% so far today to $11.13 a share. That pulls Northern Star back to a year-to-date gain in 2023:

But that’s just the start of it.

Silver Lake Resources Ltd (ASX: SLR) shares have gained more than 8.3% today. Ramelius Resources Ltd (ASX: RMS) shares are up more than 9%. And Capricorn Metals Ltd (ASX: CMM) shares have surged more than 15%.

So what’s going on with ASX 200 gold stocks today?

Well, it seems to be a response to the price of gold itself. As we flagged this morning, the precious metal surged in value at the end of last week’s trading. It has climbed even higher today and is now sitting around US$1,882 per ounce. That’s significantly above the US$1,820 levels gold was asking around the middle of last week.

Gold is viewed as a ‘safe haven’ asset, and is often bought up when investors have concerns about the immediate future of share prices or the health of the financial system.

Considering the collapse of the SVB Financial Group (Silicon Valley Bank) that has rocked the US economy over the past few days, this probably explains why investors are turning to gold right now and away from most other shares on the market.

This benefits the price of gold itself, but also the ASX gold miners that sell it. Not to mention exchange-traded funds (ETFs) that allow investors to get price exposure to the precious metal. As we covered earlier today, this session has seen a few gold ETFs hit new record highs.

So it’s probably for this reason that gold, and ASX gold stocks and ETFs, are all shining so brightly this Monday.

The post Why are ASX 200 gold stocks like Northern Star having such a stellar run today? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the 3 most heavily traded ASX 200 shares on Monday
• Why Neuren, Northern Star, Race Oncology, and Westgold shares are storming higher
• Should I buy Woolworths shares at $37?
• 5 things to watch on the ASX 200 on Monday
• Guess which ASX 200 stock has landed 3 substantial shareholders in a week

SVB Financial provides credit and banking services to The Motley Fool. Motley Fool contributor Sebastian Bowen has positions in Newcrest Mining. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended SVB Financial. The Motley Fool Australia has recommended SVB Financial. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/XQ5ALEu

The S&P/ASX 200 Index (ASX: XJO) has continued its weak form from last week so far this Monday. After a rough end to the trading week last Friday, the ASX 200 has again seen losses during the session, thanks in most part to jitters over the collapse of the SVB Financial Group in the US.

At the time of writing, the ASX 200 Index is down by another 0.36% at just under 7,120 points.

But let’s not dwell too long on all of that. Time now to take a look at the stocks currently at the peak of the ASX 200’s share trading volume charts, according to investing.com. 

The 3 most traded ASX 200 shares by volume this Monday

Liontown Resources Ltd (ASX: LTR)

First up this Monday is ASX 200 lithium share Liontown Resources. So far today, a notable 14.34 million Liontown shares have been exchanged on the markets. This doesn’t seem to be a consequence of any news or announcements out of Liontown itself, seeing as there are none today.

So this high volume looks to be a consequence of the movements of the Liontown share price this Monday. Liontown has had a fairly wild day of trading. The company is currently down by a meaty 2.57% at $1.515 a share, but fell as low as $1.48 a share this morning.

Pilbara Minerals Ltd (ASX: PLS)

Next up is another ASX 200 lithium stock in Pilbara Minerals. This Monday has seen a sizeable 27.64 million Pilbara shares change owners so far. This looks like another result of the market’s volatility today. At present, Pilbara is down by 2.51% at $3.88 a share.

But again, we saw the Pilbara share price fall by far more this morning, with the company going as low as $3.755 a share. This bouncing around looks like it is to blame for the elevated trading volumes on display here.

Sayona Mining Ltd (ASX: SYA)

Yet another ASX 200 lithium share is our final and most traded stock at this point of Monday’s session. In Sayona’s case, investors have seen a hefty 36.05 million Sayona shares bought and sold as it currently stands. And yet again, it seems this volume comes down to share price volatility.

Sayona has had a rollercoaster of a day. The lithium company is currently down 1.3% at 22.7 cents a share but fell more than 5% this morning before recovering to the levels we see now. No wonder so many shares have been zipping around the markets.

The post Here are the 3 most heavily traded ASX 200 shares on Monday appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here’s why experts rate these ASX 200 growth shares as buys
• Should I buy Woolworths shares at $37?
• Here are the 10 most shorted ASX shares this week
• Will the Pilbara Minerals share price crash in 2023?
• 5 things to watch on the ASX 200 on Monday

SVB Financial provides credit and banking services to The Motley Fool. Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended SVB Financial. The Motley Fool Australia has recommended SVB Financial. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/R7HA4Bx